CEO of the Parisian Family Office. Retired/Founder of CHIPPEWA PARTNERS, Native American Advisors, Inc., Registered Investment Advisor. White Earth Chippewa, educated conservative, raised on Indian reservations across Great Plains. Began Wall Street career in 1982. Always been, will always be, an optimist. Pureblood, clot-shot free. In a world on a dopamine binge, this is his take on life. Written at MT Ghost Ranch or Pamelot, TN farm or his winter camp in San Jose del Cabo, Mexico.
Friday, September 28, 2012
Friday History Lesson.........
In the midst of the Great Depression, Treasury Secretary Andrew Mellon famously
advised President Hoover to “liquidate labor, liquidate stocks, liquidate
farmers, liquidate real estate” instead of propping each industry up with tax
dollars. This liquidation doctrine would “purge the rottenness out of
the system” and make certain that “people will work harder” and “live a more
moral life.” Contrary to popular belief, Hoover did not take Mellon’s
advice and went forth with his own version of the New Deal that gave relief to
farmers and supported wage rates in certain industries. These efforts, which
were exacerbated under the presidency of Franklin Roosevelt, effectively
prevented the market from clearing. The boom of the late 1920s that was
driven by the Federal Reserve’s monetary inflation was not allowed to
bust. Instead of liquidating the debt and allowing the economy to
reach a sound footing, both the Hoover and Roosevelt administrations attempted
to manage it back to health. The result was the longest period of
unemployment ever recorded in American history.
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